Consumer Credit Loan of VP Bank
I believe there is an issue with this loan? Please provide your opinion!
Article 468 of the Civil Code 2015 governs loan interest rates as follows:
- Loan interest rates are determined by the parties' agreement.
In cases where the parties have agreed on an interest rate, the agreed rate shall not exceed 20% per year of the loan amount, unless otherwise stipulated by other relevant laws. Based on the actual situation and upon the proposal of the Government of Vietnam, the Standing Committee of the National Assembly decides to adjust the said interest rate and reports to the National Assembly at the nearest session.
In the event that the agreed interest rate exceeds the limit prescribed in this clause, the excess interest rate shall be ineffective.
- In cases where the parties have agreed on the payment of interest but have not clearly defined the interest rate and there is a dispute regarding the interest rate, the interest rate shall be determined at 50% of the limit rate prescribed in Clause 1 of this Article at the time of repayment.
In addition, the parties also have the right to agree on penalty terms for breaches in the contract according to Article 418 of the Civil Code 2015.
For consumer loans: Consumer loan interest rates will follow the regulations of the State Bank of Vietnam on the lending activities of credit institutions, branches of foreign banks to customers. Currently, there is no regulation on the maximum interest rate that banks can charge for consumer credit loans; therefore, at each stage, the bank will submit regulations on the range of consumer loan interest rates to be uniformly applied across the system for each period, including the highest and lowest interest rates for each consumer loan product to the State Bank. The State Bank will review for approval.
According to Notification 447/TB-NHNN in 2010 of the State Bank, the basic interest rate in Vietnamese Dong applied from December 1, 2010, is 9.0% per year.
Here, the two parties have signed a consumer credit loan contract, and the borrower seemingly does not fully understand the loan interest rates. Therefore, you need to review the contract contents and request VP Bank to provide a statement, reconciliate the principal, interest, and penalties for accurate payment.
Sincerely!
